A founding member of Westinsure Group is to leave the broker alliance amid claims that the group does not adequately support larger brokers.
PSP Westinsure, which controls premium of £6m, will sell its 26% stake to other members by the end of 2007.
PSP chairman Terry Parkins said the decision was difficult but after seven years with the alliance his company was looking to move in a different direction.
He said: “We did a cost benefit analysis of being a member of the alliance and for our size, we can do better outside of the alliance.”
Since the alliance was founded in 2000, Parkins said PSP has grown significantly and expanded into financial services – an area in which he claims Westinsure does not offer support.
He added that Westinsure’s acquisition several years ago of Nexus Group –an organisation of about 15 small brokers – was another catalyst for change.
“It meant the alliance started to attract more smaller brokers and we wanted to see the acquisition of larger companies.”
Westinsure managing director Denis Morgan said the alliance’s proposition appealed to a wide range of brokers. He said: “The size of our current members ranges from below £1m to almost £15m GWP.
“By the end of 2007 we
will have tripled our member-ship in less than three years, increasing the fundamental strength of our business and enhancing our appeal to prospective members and business partners.”
Westinsure Group, formed by five brokers based in south west England, has grown to a membership of 126 broking offices, transacting £197m GWP.